SAP MM (Materials Management) interview questions and answers for freshers in 2023
September 7th, 2023 | Uncategorized
Top 50 SAP MM (Materials Management) interview questions and answers tailored for freshers in 2023:
- What is SAP MM, and why is it important for businesses?
- SAP MM is a module that manages materials and resources in an organization. It’s crucial for procurement, inventory management, and seamless business operations.
- Can you explain the procurement process in SAP MM briefly?
- The procurement process involves creating purchase requisitions, purchase orders, receiving goods, and verifying invoices.
- What is a Purchase Requisition, and how is it generated in SAP MM?
- A Purchase Requisition is a request for materials or services. In SAP MM, it can be generated manually or automatically through MRP.
- What is a Purchase Order (PO) in SAP MM, and what information does it contain?
- A Purchase Order is a formal request to a vendor for materials or services. It includes details like quantity, price, delivery date, and vendor information.
- What is a Goods Receipt (GR), and why is it important in SAP MM?
- A Goods Receipt records the receipt of materials or services into inventory. It’s crucial for tracking inventory levels and verifying orders.
- Explain the concept of Invoice Verification in SAP MM.
- Invoice Verification involves checking and verifying supplier invoices against purchase orders and goods receipts before payment.
- What is the Material Master in SAP MM, and why is it significant?
- The Material Master contains essential information about materials, such as descriptions, prices, and stock levels, and is used in various SAP processes.
- What is a Vendor Master in SAP MM, and what kind of information does it store?
- A Vendor Master contains vendor-related data, such as contact details, payment terms, and communication methods.
- What is the purpose of the Info Record in SAP MM?
- The Info Record stores procurement-specific information like vendor-specific prices, lead times, and order quantities for materials.
- Differentiate between a Purchase Order and a Purchase Requisition in SAP MM.
- A Purchase Requisition is an internal request for materials, while a Purchase Order is a formal request to a supplier.
- How does SAP MM integrate with other SAP modules like SAP SD and SAP WM?
- SAP MM integrates with SAP SD for sales order processing and SAP WM for warehouse management, ensuring smooth business operations.
- What is Inventory Management in SAP MM, and why is it essential?
- Inventory Management involves controlling stock levels, managing material movements, and conducting physical inventory counts, ensuring inventory accuracy.
- Explain the significance of Valuation Class in SAP MM.
- Valuation Classes categorize materials for valuation purposes, determining how inventory is accounted for.
- What is Material Valuation, and how is it done in SAP MM?
- Material Valuation calculates the value of inventory based on valuation methods such as moving average price or standard price.
- What is a Movement Type in SAP MM, and how is it determined?
- A Movement Type categorizes material movements (e.g., goods receipt, goods issue) and is determined by the transaction being executed.
- Describe the concept of Reservation in SAP MM.
- A Reservation is a document used to set aside a specific quantity of material for a particular purpose, such as production.
- What is a Stock Transport Order (STO) in SAP MM, and when is it used?
- An STO is used to transfer materials between different plants within the same company code in SAP MM.
- What is the purpose of a Purchase Info Record, and how is it used in SAP MM?
- A Purchase Info Record contains vendor-specific information such as prices, lead times, and order quantities for materials, aiding in procurement decisions.
- Differentiate between Goods Receipt (GR) and Goods Issue (GI) in SAP MM.
- Goods Receipt records the receipt of materials into inventory, while Goods Issue records the removal of materials from inventory.
- What is the Procurement Cycle in SAP MM, and what are its primary stages?
- The Procurement Cycle includes Purchase Requisition, Purchase Order, Goods Receipt, and Invoice Verification.
- Explain the Vendor Evaluation process in SAP MM and its importance.
- Vendor Evaluation assesses vendor performance based on criteria like on-time delivery and quality, helping in vendor selection and improvement.
- How does SAP MM support the concept of Just-in-Time (JIT) procurement?
- SAP MM can be configured to trigger material procurement only when needed, aligning with JIT principles.
- Describe the purpose of a Quota Arrangement in SAP MM.
- A Quota Arrangement allocates procurement quantities among different suppliers based on predefined quotas.
- What is the Reorder Point (ROP) concept in SAP MM, and why is it used?
- ROP determines when to reorder materials to avoid stockouts, considering factors like lead time and consumption.
- What role does a Purchase Group play in SAP MM, and how is it assigned?
- A Purchase Group is responsible for procurement activities and is assigned to users who handle purchasing responsibilities.
- How can Physical Inventory Counts be conducted in SAP MM, and why are they necessary?
- Physical Inventory Counts involve physically counting inventory to ensure accuracy and control.
- What is a Scheduling Agreement in SAP MM, and when is it typically used?
- A Scheduling Agreement is a long-term agreement with a vendor to supply materials based on a predefined schedule.
- Explain the concept of Batch Management in SAP MM.
- Batch Management is used for materials with unique characteristics, allowing for tracking and tracing by batch.
- What is the purpose of Release Procedures in SAP MM, and how are they configured for Purchase Orders?
- Release Procedures automate the approval process for documents like Purchase Orders, ensuring compliance and control.
- How does SAP MM handle multiple currencies and exchange rates in procurement transactions?
- SAP MM supports multiple currencies and facilitates automatic currency conversion based on exchange rate settings.
- What is the Vendor Master Data Group in SAP MM, and how does it impact procurement processes?
- Vendor Master Data Group categorizes vendors based on common attributes and affects vendor selection and evaluation.
- Explain the concept of Material Ledger in SAP MM and its significance.
- Material Ledger manages multiple currencies and valuations, enhancing accuracy in financial reporting and costing.
- What are the different types of procurement processes in SAP MM, and when are they used?
- Procurement processes include standard procurement, subcontracting, consignment, and third-party procurement, each used for specific scenarios.
- What is the purpose of a Source List in SAP MM, and how is it used?
- A Source List specifies preferred suppliers for materials and is used to control procurement sources.
- What is a Quotation in SAP MM, and how is it created and processed?
- A Quotation is a vendor’s offer for materials or services. It is created in response to a Request for Quotation (RFQ) and can be used to create Purchase Orders.
- Explain the concept of Landed Cost Calculation in SAP MM and its relevance.
- Landed Cost Calculation accounts for additional costs like customs duties and transportation when valuating materials, providing a more accurate cost picture.
- What is the Release Strategy in SAP MM, and how is it configured for Purchase Orders?
- The Release Strategy defines the approval process for Purchase Orders based on criteria such as order value or vendor.
- What are the key components of Material Requirement Planning (MRP) in SAP MM, and how does it optimize procurement?
- MRP calculates material requirements based on demand, lead times, and safety stock, optimizing procurement to meet demand while minimizing excess inventory.
- What is ABC Analysis in SAP MM, and how is it used to classify materials?
- ABC Analysis classifies materials into categories (A, B, and C) based on their usage value, aiding in inventory management and control.
- Explain the concept of Shelf Life Management in SAP MM and its significance in certain industries.
- Shelf Life Management tracks the expiration date of materials, crucial in industries like pharmaceuticals and food.
- What is the SAP Fiori interface, and how does it improve the user experience in SAP MM?
- SAP Fiori is a user-friendly interface that simplifies tasks and enhances accessibility in SAP MM.
- What is Consignment Stock in SAP MM, and how is it managed?
- Consignment Stock allows materials to be stored at a customer’s location until consumed, with payment only upon usage.
- How does SAP MM incorporate IoT (Internet of Things) for material management processes?
- SAP MM can integrate with IoT devices to monitor and optimize material management processes in real-time.
- What are the primary challenges in material management, and how can SAP MM address them?
- Challenges include inventory control and supplier reliability. SAP MM addresses these challenges through advanced features like ABC Analysis and vendor evaluation.
- What are the latest trends and innovations in SAP MM for 2023, and how are they shaping the industry?
- Stay updated on trends like digital procurement, sustainability in supply chains, and the adoption of Industry 4.0 principles in SAP MM.